How To Start Investing When You Are Under 24

Updated: April 12, 2021
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When it comes to investing, the earlier you start, the better off you’ll be further down the road. Two famous investors, Warren Buffet and Ray Dalio (if you don’t know who those two are, you should really look them up), both started investing in their teens and have accumulated a massive amount of wealth — I’m talking billions.

And you don’t have to be in perfect financial health to start investing. As teenagers, neither Buffet or Dalio were. Given how on fire the stock market is, you don’t want to be the one that gets left behind while everyone else gets rich. So if you want to start building your wealth now, doing these simple things will get you on the right path..

1. Start Buying Fractional Shares With As Little As $1

 - Start Buying Fractional Shares With As Little As $1

Getting started in investing used to be expensive, but now with fractional shares, you can buy portions of whole stocks and ETFs for as cheap as a few dollars. With the free investing app Robinhood, you can start with as little as $1.

Robinhood has thousands of stocks, exchange-traded funds (ETFs) and bonds to choose from and there’s no required deposit minimum to open an account with the app. Robinhood gives you all the tools you need to be able to manage your investments yourself, including investment analysis tools and educational resources.

With Robinhood, you can trade commission-free and in real-time.

Sign up for Robinhood today and you’ll get your first share of stock (valued between $3 and $225) free to get you started.

Start investing in fractional shares

2. Invest With The Help Of A Robo Advisor Who Will Do All The Work For You

If you’re more of a hands-off investor, meaning you want someone else to manage your portfolio for you, then these apps are great options.

Acorns

Acorns creates portfolios for its users after getting information from them about their financial situations and goals. From there, users will get a recommendation of a mix of exchange-traded funds (ETFs) — from multiple asset classes to help smooth our market changes and maximize returns — for their portfolio.

Acorns also specializes in micro-investing, making it perfect for anyone looking to invest on a budget. Instead of making a lump sum deposit into your Acorns account to start investing immediately, you can shop as you normally would with the Acorns Visa™ debit card or a linked card using the app’s Round-Ups feature and your spare change will then go towards your investing account. One-time and recurring deposits are available too.

If you have no available money but want to start investing this makes it so easy.

Invest with your spare change

Betterment

Betterment uses a brief questionnaire to build a personalized portfolio of exchange-traded funds (ETFs) built on Nobel Prize-winning research (which you can adjust) that suits your goals.

Answer questions like:

  1. What are you saving for (you can have more than one savings goal)?
  2. How much are you looking to save?
  3. When will you need the money by?

Betterment will use that information to calculate how much you should initially deposit (however, there’s no account minimum) and what your continued contributions should be (you can set up auto-deposits).

Once you are invested — Betterment does all the heavy lifting for you. You’ll be kept up-to-date on the progress of your portfolio and will be notified anytime a trade is completed in your Betterment account.

When you link your various financial accounts to the app, not only will you get a full picture of your finances, it will allow Betterment to provide you with personalized guidance and advice on your portfolio and your other financial accounts too.

Get a personalized portfolio of ETFs

Titan

Titan is an investment firm that offers two investing strategies to choose from — Flagship (stocks in large-cap U.S. companies) and Opportunities (stocks in small/mid-cap U.S. companies) to help members grow their money long-term. Its been said that Titan was built like a hedge fund which makes it really unique.

The heavily vetted stocks in these portfolios are known as “compounders.” These are stocks that compound at high-interest rates — so they’re extremely profitable. Holding on to them long-term can reduce trading fees and taxes, among other advantages. Being that fees and taxes can really eat up your returns, holding onto compounder stocks, which help to combat them, can potentially increase your chances of building lasting wealth over time.

What we love about Titan:

  • It offers fractional share trading so you can invest any dollar amount you want
  • Portfolios are made up of a basket of 20 heavily vetted stocks with a personalized hedge
    to help reduce risk
  • You’ll get real-time updates on your investments and will be able to track your portfolio growth
  • You’ll have access to your portfolio manager right through the app
  • Provides downside protection tailored to an individual’s risk tolerance, so investors can still earn a profit when the market declines
  • You can withdraw your capital within 2 to 4 business days
You can open an account with Titan today with a low minimum deposit of $100.

Invest in compounder stocks

3. Get Some Help Socking Away The Money And Throw What You Can At Index Funds

 - Get Some Help Socking Away The Money And Throw What You Can At Index Funds

Index funds are generally considered a good investment — and are often used by investors as the core of their portfolio — because they’re affordable, they are a great way to diversify your portfolio because they’re basically a basket of different investments, and they tend to perform well since they mirror market indexes to match their performance.

Digit is a great option for investing in index funds.

It’s an automated savings and investing app that produces portfolios made up of exchange-traded funds (ETFs), which are a type of index fund, for you.

  • Digit offers two investing accounts — a tax-advantaged IRA and a brokerage account.
  • Pick the account type you want and then tell the app your reason for investing, like building wealth, buying a home or saving for your family.
  • Digit will ask you about your risk tolerance (choose from conservative, moderate or aggressive) and will use your answer to create a portfolio made up of exchange-traded funds (ETFs).

Because the app helps you save money without any effort — pulling small amount out of your checking account to invest, so small you won’t even miss the money — you’ll be able to reach your investing goals faster. Just link a bank account to the app, and Digit analyzes your income and spending patterns to help you save an amount you can afford to put towards investing (and other savings goals) every day.

You can try Digit for free for the first 30 days. After that, only pay $5 a month.

Invest in index funds on autopilot

4. Become An Investing Expert Without Doing Much Work

If you really want to make strides in your investments early on, these investing news and analytics tools will do the trick.

Atom Finance

Atom Finance is an investment research platform used by successful investors. When you sign up for it, you’ll get access to cutting-edge tools and resources previously only available to Wall Street professionals for any company, sector, industry or topic, all in real-time.

When you connect your portfolio to it, you can track all of your investments in one place in real-time and set up custom portfolio notifications so you can actively work to make adjustments to your portfolio when needed. Atom also provides user chat rooms where you can chat with other investors and get feedback on investment ideas.

This platform will really give you a leg up with your investment decision-making. Sign up for Atom Finance today.

Connect your portfolio today

Morning Brew

Morning Brew is a newsletter is used by more than 2.4 million people (and growing daily) to get the latest news on the stock market, world business and personal finance tips delivered to them via email in a fun, 5-minute read. It’s nothing like the boring and entirely too long business briefs you see in traditional business news magazines.

So if you’ve started paying for monthly subscriptions to a bunch of different business news outlets like the Wall Street Journal or Bloomberg Businessweek, stop and cancel them. Morning Brew will tell you everything you need to know for free.

Sign up for Morning Brew to join millions of people using this newsletter to make smarter money moves.

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Final Thoughts

The great thing about the rise of online brokerages and robo-advisors is that it’s much easier to get started in investing now than it’s ever been. You don’t need to have years of experience or be rich. You have access to all kinds of investments, research and analytical tools, and educational resources at the tip of your fingers. So stop waiting for the right time. Anytime is a good time to start investing and building wealth.

Feature Image: TikTok